Page:United States Statutes at Large Volume 110 Part 2.djvu/670

 110 STAT. 1462 PUBLIC LAW 104-168-^ULY 30, 1996 TITLE VI—INFORMATION RETURNS SEC. 601. CIVIL DAMAGES FOR FRAUDULENT FILING OF INFORMATION RETURNS. (a) GENERAL RULE. —Subchapter B of chapter 76 (relating to proceedings by taxpayers and third parties) is amended by redesignating section 7434 as section 7435 and by inserting after section 7433 the following new section: "SEC. 7434. CIVIL DAMAGES FOR FRAUDULENT FILING OF INFORMA- TION RETURNS. "(a) IN GENERAL.—I f any person willfully iiles a fraudulent information return with respect to pa3anents purported to be made to any other person, such other person may bring a civil action for damages against the person so filing such return. "(b) DAMAGES.—In any action brought under subsection (a), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the greater of $5,000 or the sum of— "(1) any actual damages sustained by the plaintiff as a proximate result of the filing of the fraudulent information return (including any costs attributable to resolving deficiencies asserted as a result of such filing), "(2) the costs of the action, and "(3) in the court's discretion, reasonable attorneys fees. "(c) PERIOD FOR BRINGING ACTION. —Notwithstanding any other provision of law, an action to enforce the liability created under this section may be brought without regard to the amount in controversy and may be brought only within the later of— "(1) 6 years after the date of the filing of the fraudulent information return, or "(2) 1 year after the date such fraudulent information return would have been discovered by exercise of reasonable care. "(d) COPY OF COMPLAINT FILED WITH IRS—Any person bringing an action under subsection (a) shall provide a copy of the complaint to the Internal Revenue Service upon the filing of such complaint with the court. "(e) FINDING OF COURT TO INCLUDE CORRECT AMOUNT OF PAY- MENT.— The decision of the court awarding damages in an action brought under subsection (a) shall include a finding of the correct amount which should have been reported in the information return. "(f) INFORMATION RETURN.— For purposes of this section, the term 'information return' means any statement described in section 6724(d)(1)(A). ". (b) CLERICAL AMENDMENT. —The table of sections for subchapter B of chapter 76 is amended by striking the item relating to section 7434 and inserting the following: "Sec. 7434. Civil damages for fraudulent filing of information returns. "Sec. 7435. Cross references.". 26 USC 7434 (c) EFFECTIVE DATE. —The amendments made by this section note. shall apply to fraudulent information returns filed after the date of the enactment of this Act.

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